In risk assessment, what does the likelihood of occurrence refer to?

The likelihood of occurrence in risk assessment specifically refers to the probability that a particular hazard will lead to an incident or adverse event. This concept is crucial in risk management as it helps leaders identify and prioritize risks based on their potential impact and frequency. By understanding the likelihood, leaders can make informed decisions about which risks require more immediate attention and what kind of controls are necessary to mitigate those risks effectively.

In this context, assessing the likelihood involves evaluating historical data, environmental factors, and current operational procedures that might influence the probability of an incident occurring. This assessment is essential for ensuring that resources are allocated appropriately, and preventive measures are implemented where they are needed most.